Louisiana Foreclosure Laws

Louisiana Foreclosure Law

The Louisiana foreclosure laws provides for two types of legal resources in the event of foreclosure of real estate. Executory and ordinary are the two types of judicial foreclosures allowed in Louisiana courts. The time taken for a judicial process for foreclosure of real estate depends on the intricacies involved in a case and the backlog of cases in the court. On an average it could take three to five months to complete a real estate foreclosure process.

The Judicial process under Louisiana foreclosure laws

When a judicial process is made and formalized in the presence of legal authorities and witnesses, it is referred to as an executory judicial process. All that is needed is the filing of a suit by the lender and the submission of relevant supporting documents. This method makes for speedy dispersal of foreclosure cases.

Once the relevant documents have been submitted the borrower is served with a notice specifying payment details. A time period for payment is mentioned and the consequences of non payment are also mentioned in the notice. The usually mentioned consequences are the possibility of repossession and sale of the distressed property after the completion of necessary legal formalities.

The court decides upon the minimum price for the foreclosure property. A deposit of 10% of the minimum sale price is to be made in court. The highest bidder is given a notice period for payment of the sale amount to the court. In case the payment is not made within the stipulated time period the buyer stands to forgo the sale and the initial deposit.

The Louisiana foreclosure laws allows the lender to file for a deficiency judgment. However, there is no leeway given to the borrower for the right of redemption.